Guess? Inc. (GES)
Return on equity (ROE)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 198,199 | 149,610 | 171,363 | -81,229 | 95,975 |
| Total stockholders’ equity | US$ in thousands | 684,940 | 534,113 | 622,658 | 543,663 | 639,714 |
| ROE | 28.94% | 28.01% | 27.52% | -14.94% | 15.00% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $198,199K ÷ $684,940K
= 28.94%
Guess? Inc.'s return on equity (ROE) has shown a consistent positive trend over the past five years, indicating efficient utilization of shareholders' equity to generate profits. The ROE has steadily increased from 15.00% in 2020 to 28.94% in 2024, reflecting an improvement in profitability and efficiency in generating earnings from equity investments.
The significant improvement in ROE over the years indicates that Guess? Inc. has been successful in leveraging its equity capital to drive higher returns for shareholders. However, the negative ROE of -14.94% in 2021 raises concerns, suggesting a period of unprofitability and inefficiency in generating returns on equity investments.
Overall, Guess? Inc. has demonstrated a strong performance in terms of ROE in recent years, with the company showing a consistent ability to generate healthy returns for its shareholders. It is important for investors to monitor the trend in ROE to assess the company's ability to efficiently use its equity capital to drive profitability and sustainable growth.